New Hellenic Postbank strikes deal with union

The board of the new Hellenic Postbank (TT), following its split into a “good” and a “bad” bank, has reached an agreement with the union of its employees that will cut the risk of mass layoffs.

TT announced that negotiations between the two sides led to an agreement on the reduction of total salary costs by 30 percent. “The implementation of this action will use the sector contract of the Federation of Bank Employee Unions of Greece (OTOE) and will ensure that employees with low salaries will be protected,” the statement read.

The bank will also set up a voluntary exit program, whose result will formulate the final change in salary costs. Sources say that the program will aim at the departure of about 600 employees. TT currently employs some 2,400 people.

Another 800 are employed by T Bank (formerly known as Aspis Bank), which is under TT’s control. The agreement is said to have secured all jobs and that the new TT, which is now under the control of the Hellenic Financial Stability Fund (HFSF), will hire all T Bank employees.